S&P cuts Dayton Superior to D

Standard & Poor's said that it lowered its corporate credit rating on Dayton Superior Corp. to D from CCC- following the company's announcement that it has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware in Wilmington.

At the same time, the agency said it lowered all of its issue-level ratings on the company's senior secured notes and 13% senior subordinated notes due 2009 to D.

"Standard & Poor's has reviewed the outstanding recovery ratings for Dayton Superior and pending further information from the bankruptcy proceedings, the recovery rating on the company's senior secured term loan remains unchanged at 3, indicating its expectations for meaningful (50% to 70%) recovery, and the recovery rating on the senior subordinated notes remains unchanged at 6, indicating its expectations for negligible (0% to 10%) recovery," said S&P credit analyst Tobias Crabtree.

The company also announced that, pending court approval, it has arranged for a 12-month debtor-in-possession credit facility from GE Capital of up to $165 million, S&P said.

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